Setting up your payout account and tax forms

Applies to Windows and Windows Phone

In order to receive money from app sales in the Windows Store, you need to set up your payout account and fill out the necessary tax forms.

Note  Money from apps listed in the Windows Phone Store is handled separately; in order to receive proceeds from the Windows Phone Store, you'll need to set up a payout account and tax forms in your Windows Phone Dashboard.

If you only plan to list free apps (and don't plan to offer in-app purchases through the Windows Store), you don't need to set up a payout account or fill out any tax forms. If you change your mind later and decide you do want to sell apps (or in-app purchases), you can set up your payout account and fill out tax forms at that time.

Note  Certain markets only allow you to list free apps. If your account is registered in one of these markets, you will not have the option to set up a payout account.

After you have set up your developer account, there are two things you need to do before you can sell apps (or in-app purchases) in the Windows Store:

Note  For details about how and when you will be paid for the money your apps make, see Getting paid.

Windows Store payout account

A payout account is the bank account to which we send the proceeds from your sales. This bank account must be located in the same country where you registered your developer account.

Bg124529.wedge(en-us,WIN.10).gifTo set up your Windows Store payout account

  1. Sign in to the Windows Store Dashboard.
  2. Under Profile, click Payout to access your account info.
  3. Click Modify to manage your account.
  4. On the screen that appears, fill out the info for your account.

    Note  The fields you use to provide your account info accept only alphanumeric characters.

  5. Save your info.

If you need to update or change your payout account, follow the same steps above, replacing the current info with the new info.

Important  Changing your payout account can delay your payments by up to one payment cycle. This delay occurs because we need to verify the account change, just as we did when you first set up the payout account. You'll still get paid for the full amount after your account has been verified; any payments due for the current payment cycle will be added to the next one. See Getting paid for more details on the Windows Store payment cycles.

Specific requirements for certain countries/regions

In some countries and regions, additional requirements for payout accounts must be followed. If you are a resident of Pakistan, Russia, or Ukraine, please note the following requirements.

Pakistan

Form-R is a Pakistan banking regulatory requirement. It is used to indicate the purpose and reason for receipt of funds from abroad. Therefore, anytime that you are eligible for a monthly payout from Microsoft, you will need to submit a Form-R to your bank before the payout can be released to your account. Contact your local bank branch for instructions on how to obtain a copy of Form-R.

You will need to submit a Form-R to your bank each month that you are eligible for a payout. For example, if you expect to receive a payout every month of the year, you will need to submit a Form-R 12 times (once each month).

Once the payout has been submitted to your bank, you have 90 days to submit a Form-R. If it is not submitted within 90 days, the funds will be returned to Microsoft.

Note  Effective January 1, 2015, Pakistan banks will reduce the Form-R submittal window from 90 days to 30 days.

Russia

If you’re a developer who lives in Russia, you may need to provide documentation to your bank before your bank will deposit funds into your account. When you’re eligible to be paid, we will provide you with the following documentation in an email message:

  1. Certificate of Acceptance (CoA) – contains the amount of payout being transferred to your account.
  2. App Developer Agreement (ADA) – a signed copy of the developer agreement that needs to be counter signed.

To ensure your payout is successful, please also keep in mind the following:

  • The Account holder name entered for your payout account in the Windows Store Dashboard must be the exact same name associated with your bank account. For example, if your bank account name contains a middle name, add a middle name to your Account holder name.
  • Payouts are transferred directly from Microsoft to your bank account in Ruble (RUB) currency.
  • Bank information entered in Dev Center in Latin characters is translated to Cyrillic characters.
  • Payouts must be made to a bank account and not to a bank card.

Ukraine

If you’re a developer who lives in Ukraine, you may need to provide documentation to your bank before your bank will deposit funds into your account. When you’re eligible to be paid, we will provide you with the following documentation in an email message:

  1. Certificate of Acceptance (CoA) – contains the amount of payout being transferred to your account.
  2. App Developer Agreement (ADA) – a signed copy of the developer agreement that needs to be counter signed.
  3. Amendment Agreement (AA) – this document can be used by your bank to help identify your payout funds.

Microsoft provides all three documents when your first payout is attempted. For any subsequent payouts, you will only receive the CoA document. Please retain the ADA and AA documents in case you need them to receive future payouts from your bank.

To ensure your payout is successful, please also keep in mind the following:

  • The Account holder name entered for your payout account in the Windows Store Dashboard must be the exact same name associated with your bank account. For example, if your bank account name contains a middle name, add a middle name to your Account holder name.
  • Payouts are transferred directly from Microsoft to your bank account in USD currency.
  • Bank information entered in Dev Center in Latin characters is translated to Cyrillic characters.

Tax forms

After you have registered for a developer account and set up your Windows Store payout account, you can create your tax profile for the Windows Store by completing the following steps:

  • Specify your country of residence and citizenship.
  • Fill out the appropriate tax forms.

You can complete and submit your tax forms electronically in your Dashboard; in most cases, you don't need to print and mail any forms.

Important  Different countries and regions have different tax requirements. The exact amount that you must pay in taxes depends on the countries and regions where you sell your apps. See the App Developer Agreement to find out for which countries Microsoft remits sales and use tax on your behalf. In other countries, depending on where you are registered, you may need to remit sales and use tax for your app sales directly to the local taxing authority. In addition, the app sales proceeds you receive may be taxable as income. We strongly encourage you to contact the relevant authority for your country or region that can best help you determine the right tax info for your Windows Store developer activities.

Bg124529.wedge(en-us,WIN.10).gifTo complete your tax profile

  1. Sign in to the Windows Store Dashboard and click Tax on the left side of the screen, under Profile. Review your current tax profile status and click Continue to complete the required forms.
  2. Answer the questions about United States citizenship and residency.
  3. Click Continue.
  4. If your name and address info are displayed, confirm them for the purposes of filing taxes.

Next, you will see electronic versions of the tax forms that you must complete. Regardless of your country of residence or citizenship, you must fill out United States tax forms to sell any apps or in-app purchases through the Windows Store. Developers who satisfy certain United States residency requirements must fill out an IRS W-9 form. Other developers outside the United States must fill out an IRS W-8 form. You can fill out these forms online through the Dashboard as you complete your tax profile.

A United States Individual Taxpayer Identification Number (or ITIN) is not required to receive payments from Microsoft or to claim tax treaty benefits.

Withholding rates

The info you submit in your tax forms determines the appropriate tax withholding rate. The withholding rate applies only to sales that you make into the United States; sales made into non-US locations are not subject to withholding. The withholding rates vary, but for most developers registering outside the United States, the default rate is 30%. You have the option of reducing this rate if your country has agreed to an income tax treaty with the United States.

Tax treaty benefits

If you are outside the United States, you may be able to take advantage of tax treaty benefits. These benefits vary from country to country, and may allow you to reduce the amount of taxes that the Windows Store withholds. You can claim tax treaty benefits by completing Part II of the W-8BEN form. We recommend that you communicate with the appropriate resources in your country or region to determine whether these benefits apply to you.

 

 

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